The leading cryptocurrency Bitcoin (BTC) surpassed $ 50,000 last night. While this rise stimulated the market, the next targets in Bitcoin started to be discussed.
While some analysts state that the rise will continue, some analysts state that a correction may occur from these levels.
Accordingly, CryptoQuant analyst believes that Bitcoin may turn downward.
At this point, the analyst said that Bitcoin's current SOPR Ratio indicates a possible correction.
Stating that the SOPR Ratio has increased above 1, the analyst said that this ratio shows that Bitcoin owners who are making a profit at the current price may be making a profit and selling.
Underlining that there could be a correction at this point at any time, the analyst pointed out that investors should not be caught up in FOMO and recommended that they wait for the SOPR rate to fall below 1 to make purchases.
“Looking at the current chart, the SOPR ratio was calculated to be above 1 as a 30-day moving average.
Looking at historical data, Bitcoin's current position does not appear to be the optimal entry point for buying.
Because, given the high probability shown by the current SOPR Ratio, the ratio signals that a price correction may occur at any time from this point.
“It is recommended to watch for the SOPR Ratio to fall below 1, which indicates FOMO-induced buying as an opportunity to enter the market and then selling at a loss.”
Bitcoin continues to trade at $49,164 at the time of writing.
*This is not investment advice.
